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Developing
Marketing
Strategies and Plans
Mr. Ajit Arya
Faculty-Marketing
Department of Business Studies
C. U. Shah College of Engg. & Tech.
 Chapter Questions

• How does marketing affect customer

value?
• How is strategic planning carried out at
different levels of the organization?
• What does a marketing plan include?
The Value Delivery Process
3 V’s Approach to Marketing

Define the value segment

Define the value proposition

Define the value network

 What is the Value Chain?

The value chain is a tool for identifying

ways to create more customer value
because every firm is a synthesis of
primary and support activities
performed to design, produce, market,
deliver, and support its product.
Porter’s Value Chain
 Core Business Processes

• Market-sensing process (marketing intelligence)

• New-offering realization process (R & D)
• Customer acquisition process (defining target
markets and consumers)
• Customer relationship management
process (deeper understanding of consumers)
• Fulfillment management process (receiving,
shipping, and collecting payments)
 Characteristics of Core Competencies

• A source of competitive advantage

• Applications in a wide variety of markets
• Difficult to imitate
Netflix’s Distinctive Capabilities
 What is Holistic Marketing?

Holistic marketing sees itself as

integrating the value exploration,
value creation, and value delivery
activities with the purpose of building
long-term, mutually satisfying
relationships and coprosperity among
key stakeholders.
A Holistic Marketing Framework
• Value Exploration
– Customer’s cognitive space (reflects existing and latent needs and includes
participation, stability, freedom, and change).
– Company’s competence space (broad versus focused scope of business and
depth physical versus knowledge-based capabilities).
– The collaborator resource space (horizontal and vertical partnerships).
• Value Creation

Marketer’s need to:
– Identify new customer benefits from the customer’s view.
– Utilize core competencies.
– Select and manage business partners from its collaborative networks.
• Value Delivery—What Companies Must Become?
• Often requires an investment in infrastructure and capabilities.

Proficient at customer relationship management.
– Who the customers are, and respond to different customer opportunities.

Internal resource management.
– Integrate major business processes within a single family of software modules.

Business partnership management.
– Allow the company to handle complex relationships with its trading partners.
Strategic Planning and Activities
• Strategic planning: is the managerial process of
developing and maintaining a viable fit (or match)
between the organization’s objectives, skills, and
resources and its changing market opportunities.
• Strategic planning activities:
– Setting corporate missions, objectives, and goals
– Analyzing strategic business units (SBUs) and identifying
future opportunities; manage SBUs as a portfolio
– Establishing a target “product” portfolio
– Developing strategies for each SBU
– Implementing marketing plans

• Marketing strategy: a plan of action for the 4Ps aimed at

target markets.
What is a Marketing Plan?

A marketing plan is the central

instrument for directing and
coordinating the marketing effort.
It operates at a
strategic and tactical level.
 Levels of a Marketing Plan

• Strategic • Tactical
– Target marketing – Product features
decisions – Promotion
– Value proposition – Merchandising
– Analysis of – Pricing
marketing – Sales channels
opportunities
– Service
The Strategic Planning, Implementation, and
Control Processes
 Corporate Headquarters’
Planning Activities
• Define the corporate mission
• Establish strategic business units
(SBUs)
• Assign resources to each SBU
• Assess growth opportunities
Good Mission Statements

Focus on limited number of goals

Stress major policies and values

Define major competitive spheres

Take a long-term view

Short, memorable, meaningful

Major Competitive Spheres

Industry

Geographical Products

Vertical
channels Competence

Market
segment
 Infosys Technologies Limited

“To achieve our objectives in an environment

of fairness, honesty, and polite towards
our clients, employees, vendors, and society
at large.”
 eBay

“We help people trade anything on earth.

We will continue to enhance the online
trading experiences of all—collectors,
dealers, small businesses, unique item
seekers, bargain hunters, opportunity
sellers, and browsers.”
 Strategic Business Units

A SBU is any organizational unit (e.g., company

division, product line, brand) that is a:

Single business or collection of related businesses that
can be planned for separately from the rest of the
company.

Has its own set of competitors.

Has a manager who is responsible for strategic planning
and profit performance, who controls most of the factors
affecting profit.
Product-Orientated vs. Market-Orientated
Definitions of a Business

Company Product Market

Missouri-Pacific We run a railroad We are a people-
Railroad and-goods mover

Xerox We make copying We improve office

equipment productivity

Standard Oil We sell gasoline We supply energy

Columbia Pictures We make movies We entertain

people

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Assigning Resources To SBUs
• BCG’s Growth – Share Matrix.
• GE 9 Cells Matrix.
The Boston Consulting Group’s Portfolio
(Growth-Share) Matrix
Resource Allocation Strategies for
the BCG Portfolio Matrix:

• Build
• Hold
• Harvest
• Divest

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GE Strategic Planning Grid: Classification and
Strategies
The Strategic Planning Gap
Product-Market Expansion Grid

2-29
Developing the People’s Car
‘TATA Nano’
What is Corporate Culture?

Corporate culture is the shared

experiences, stories, beliefs, and
norms that characterize an
organization.
Business Unit Strategic Planning
SWOT Analysis

Strengths

Weaknesses

Opportunities

Threats
FedEx

FedEx added
Sunday deliveries
based on customer
requests and
market demand
Opportunity and Threat Matrices for a TV-
lighting-equipment company
 Goal Formulation and MBO

• Objectives should be quantitative

• Goals should be realistic
• Objectives must be consistent
• Unit’s objectives must be measurable
Porter’s Generic Strategies

Overall Cost Leadership

Differentiation

Focus

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Categories of Marketing Alliances

Product or Service Alliances

Promotional Alliances

Logistics Alliances

Pricing Collaborations
 The Marketing Plan

Comprehensive, written statement of what is

expected from each business unit in the future

Evolves from the company’s mission statement

Usually prepared annually

Includes both historical information and
recommendations on how to improve performance

Combines strategies with timetables for action
Contents of the Marketing Plan

Executive summary

Table of contents

Situation analysis

Marketing strategy

Financial projections

Implementation controls
Evaluating a Marketing Plan

Is the plan simple?

Is the plan specific?

Is the plan realistic?

Is the plan complete?
Thank You!!!